KB Asset Management Launches 'RISE US Semiconductor Inverse ETF'

KB Asset Management announced on the 17th that it will launch the ‘RISE US Semiconductor Inverse (Synthetic H) ETF’ on the 22nd of this month. This exchange-traded fund (ETF) is an inverse product that tracks the performance of the ‘RISE US Semiconductor NYSE ETF,’ which invests in core semiconductor companies listed in the US, in the opposite direction (?1x).

The ‘RISE US Semiconductor NYSE ETF’ follows the same underlying index as the global representative semiconductor ETF, the ‘iShares Semiconductor ETF’ (ticker: SOXX). Since its launch in October last year, this ETF has been called the Korean version of the ‘SOXX ETF’ and has attracted significant interest from pension investors.

The underlying index, the ‘NYSE Semiconductor Index,’ invests in the top 30 stocks classified as semiconductor companies by industry. ?The major constituent stocks include AMD (8.8%), Broadcom (8.5%), Nvidia (8.1%), Qualcomm (6.1%), Texas Instruments (6.0%), Micron Technology (4.3%), and Intel (4.3%), as of September 30.

Recently, due to the imbalance between semiconductor supply and demand causing increased stock price volatility, inverse ETFs have gained attention as an attractive investment tool for investors looking to bet on volatility in the semiconductor sector.

Looking at the top stocks by purchase amount among individual investors investing in US stocks, the ‘DIREXION DAILY SEMICONDUCTOR BEAR 3X ETF (SOXS)’ has consistently ranked among the top since the beginning of the year. ‘SOXS’ is an inverse (-3x) product of the ‘iShares Semiconductor ETF,’ and with the increased volatility of AI semiconductors in the second half of the year, approximately $1.62 billion flowed in during September.

Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, "We have added an inverse product following the regular ETF so that investors interested in US-listed semiconductor companies can selectively invest. The ‘RISE US Semiconductor Inverse (Synthetic H) ETF’ will serve as an efficient hedging tool for investors looking to prepare for semiconductor-related stock price corrections."

This content was produced with the assistance of AI translation services.